1. On 7 September 2017, Leonard Ltd purchased a used machine for $48,000. The cost was debited to the Machinery account. Prior to use, additional cash expenditures were made for painting and repairing the machine, $4,200, and installing and testing the machine, $3,000. These additional expenditures were debited to Repairs and Maintenance Expense. The repairs and installation were completed on 10 October 2017, after which the machine was available for use for the first time. The useful life was estimated at 5 years from the date of availability, and the residual value estimated at $4,000. Leonard Ltd will use the declining balance method of depreciation, calculated at twice the straight-line rate.

Required:  

Prepare the correcting and/or adjusting journal entries for the financial year.

Answer rating: 100% (QA)

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